AGENCY: U.S. Department of Agriculture (USDA) Rural Development (RD), Rural Utility ServiceDESCRIPTION: USDA Rural Development guaranteed loans made by lenders to finance the development of water and waste disposal systems, and other essential community facilities in rural areas.ELIGIBLE USES:
• Water and waste disposal include: water treatment and distribution; sewage collection and treatment; solid waste collection, disposal and recycling; and storm drainage.
• Community facilities include: public safety buildings and equipment; health care; public service buildings (schools, community buildings and courthouses); public infrastructure; and industrial parks and airports.PROGRAM/LOAN STRUCTURE:
• Maximum Program Benefits: Up to 90%; no limit on loan size.
• Equity: Based on the lender's requirements.
• Maturities: A maximum of 40 years, or useful life of the security.
• Rates: Fixed or variable, and negotiable.
• Fees: A guarantee fee of 2% of the guaranteed portion of the loan. QUALIFICATION CRITERIA/COMMENTS:
• Guarantees for water and waste disposal systems are available for towns of up to 10,000 in population and community facilities for communities of up to 50,000 in population.
• Rural Development Homepage: http://www.rurdev.usda.gov/rbs/index.html.